Residential revenue bonds will support homebuying opportunities for low-and moderate-income Marylanders.
Maryland Department of Housing and Community Development Secretary Kenneth C. Holt announced the issuance of the first-ever “Social Bonds” to be sold by the department. The department’s bond-issuing entity, the Community Development Administration, issued over $251.7 million in Residential Revenue Bonds, the first to be designated as “Social Bonds” in agency history.
Proceeds of the bond sale will finance mortgage loans offered through the Maryland Mortgage Program to purchase owner-occupied single-family residences by persons or families of limited income.
“Under Governor Hogan’s leadership, the Community Development Administration’s innovative financing tools have supported over $1 billion in mortgage lending every year over the past several years,” said Secretary Holt. “This Social Bonds designation will help our department attract additional investments to make homeownership more affordable for Marylanders.”
According to a press release:
The Social Bonds designation indicates that the bonds will raise funds for programs and projects that seek to achieve positive social outcomes. The use of the proceeds from the bond sale to finance mortgage loans for low- and moderate-income families meets the International Capital Market Association’s sustainable development goals of No Poverty, Decent Work and Economic Growth, Reduced Inequalities, and Sustainable Cities and Communities.
The Social Bonds issuance follows the department’s first ‘Sustainability Bonds’ issuance this summer, which supported green and energy efficient affordable rental housing in Frederick, Md. Both institutional and individual investors are increasingly interested in using their investable dollars to purchase bonds that finance projects that help to build strong communities, improve social outcomes and are good for the environment. Through the issuance of Sustainability Bonds and Social Bonds, the department is providing investors with an opportunity to make an impactful investment decision.
The Maryland Mortgage Program provides fixed-rate mortgages that feature down payment and closing cost assistance, and student debt relief through the popular Maryland SmartBuy initiative. Under Governor Larry Hogan’s leadership, the program has reached the milestone of $1 billion in mortgages every year since 2019, assisting approximately 4,000 first-time homebuyers per year. For more information, visit mmp.maryland.gov.